ADC Therapeutics first received FDA approval earlier this year and is now using the drug’s commercial prospects as a way to raise cash.in a Royalty agreement Working with healthcare royal partners, the biotech company can receive up to US$325 million.
The new ADC treatment drug Zynlonta is a drug for the treatment of diffuse large cell B-cell lymphoma (DLBCL). According to the terms of the transaction announced on Thursday, ADC Therapeutics will receive $225 million after the transaction is completed. The Lausanne, Switzerland-based biotech company will earn another $75 million in revenue after the first commercial sale of the drug in Europe, and an additional $25 million after reaching the sales milestone next year.
Except for certain Asian markets where Overland Pharmaceuticals holds rights to the drug, HealthCare royalties receive a 7% royalty from ADC Therapeutics’ global net sales and licensing revenues. The transaction also awarded a 7% royalties from the HealthCare royalties in Stamford, Connecticut, for future sales and licensing revenues from the next drug camidanlumab (usually abbreviated as “Cami”) in the ADC Therapeutics pipeline.
ADC Therapeutics develops antibody-drug conjugates (ADCs), which are drugs that link the payload of anti-cancer drugs with targeted antibodies that target tumors. This method aims to carry out targeted strikes to protect healthy organizations. Zynlonta’s accelerated April approval covers DLBCL patients Patients whose cancer has recurred or did not respond to early treatment. This drug is the first ADC approved for the treatment of DLBCL, a type of non-Hodgkin’s lymphoma, a cancer that affects lymphocytes.
Zynlonta is designed to target the cancer protein CD19. Cami uses Genmab-licensed antibodies to target a different protein called CD25. ADC Therapeutics is testing Cami in a pivotal phase 2 clinical trial in patients with relapsed or refractory Hodgkin’s lymphoma. A phase 1b study is ongoing to test ADC as a monotherapy and combined with Merck’s immunotherapy pembrolizumab (Keytruda) for the treatment of solid tumors.
ADC Therapeutics is slowly increasing sales for Zynlonta.At the end of the second quarter of this year, the company Report Product revenue is 3.7 million U.S. dollars. The company’s cash position at the end of the quarter was $371.9 million. The company is also committed to bringing the drug to other markets.In its report Financial results for the second quarter Earlier this month, ADC Therapeutics stated that it expects DLBCL to submit a regulatory application for Zynlonta in Europe in the second half of this year. Clinical trials are also planned to evaluate the drug as a first-line treatment for DLBCL and in combination with other therapies as a treatment for B-cell and non-Hodgkin’s lymphoma.
According to ADC Therapeutics regulatory documents, the royalty agreement prohibits the company from entering into additional royalty transactions for Zynlonta or Cami outside of China, Hong Kong, Macau, Taiwan, Singapore and South Korea. As long as the company has outstanding debts under the 2020 agreement with Deerfield Partners, this restriction will always exist.
The terms of the 7% royalty for the two ADC Therapeutics drugs are not fixed. According to performance tests to be conducted in 2026 and 2027, the agreement allows the royalty percentage to be increased to 10%. However, the total royalties are capped at 2.25 to 2.5 times the total amount paid for health care royalties. ADC therapy. Once the upper limit is reached, the agreement is terminated.
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